May 24 (Bloomberg) -- Grupo Gigante SAB, a Mexican owner of
office-supply stores, has lined up financing from Credit Suisse
Group AG and Banco Bilbao Vizcaya Argentaria SA for its proposed
takeover of Office Depot Inc.’s local unit, a person with
knowledge of the matter said.

Gigante, which already owns half of the unit, has received
indications from Office Depot that its offer to buy the rest for
$700 million will be accepted as soon as next week, said the
person, who asked not to be named because the discussions are
confidential. Office Depot shares rose as much as 2.8 percent
today before trimming gains to 0.9 percent in New York. Gigante
shares were unchanged.

Jorge Hernandez Talamantes, an investor relations official
with Mexico City-based Gigante, said in a telephone interview
that talks are ongoing. He declined to comment on the financing,
timing or terms of a possible deal. Brian Levine, a spokesman
for Boca Raton, Florida-based Office Depot, confirmed that talks
were continuing and declined to comment further. Drew Benson, a
New York-based spokesman for Credit Suisse, declined to comment
on the acquisition financing, as did Rodolfo Benitez, a
spokesman for BBVA’s Bancomer unit.

Office Depot is considering the sale amid pressure from
activist investor Starboard Value LP, its largest shareholder,
to cut costs and improve operations. Starboard said in a letter
to Office Depot made public Feb. 27 that a sale of the Mexico
stake at a “full and fair price is clearly in the best
interest” of shareholders.

Gigante announced in February it had offered 8.78 billion
pesos ($700 million) for the stake. Gigante extended its initial
offer deadline of March 15 after Office Depot agreed to a
separate merger with competitor OfficeMax Inc. Earlier this
month, Office Depot said it received agreement from Naperville,
Illinois-based OfficeMax to proceed with the Gigante
negotiations.